Making the leap from employee to business owner can be a daunting task. Starting a new business venture requires motivation, focus, skill and a great deal of determination. The first step in deciding to start a business is for the aspiring entrepreneur to determine if he possesses the traits necessary to start and operate a successful business.
There is no sure-fire way to guaranty the success of a business venture, but by considering the following questions one should be able to determine if entrepreneurship is right for him or her.
Is the Aspiring Entrepreneur Self-Motivated?
It is entirely up to the entrepreneur to develop timetables for deliverables, complete projects, organize the books and records of the business, follow through on business goals and objectives, and pay proper attention to detail-oriented items and tasks.
How Well Does the Aspiring Entrepreneur Develop and Maintain Relationships with Various Personality Types?
Entrepreneurs must develop working relationships with diverse groups of individuals including clients and customers, product and service providers, employees and contractors, bankers, lawyers and accountants. Does the entrepreneur have the appropriate personality to handle the demanding, unreliable and irrational individuals that he will inevitably encounter in the course of doing business?
Can the Aspiring Entrepreneur Handle the Type of Decision-Making Required of a Business Owner?
Business owners must continually make decisions that will affect the future and success of the business endeavor, and these decisions must be made often, quickly and independently. Does the entrepreneur have the self-confidence and business savvy to make such decisions without consulting business advisors?
Does the Aspiring Entrepreneur Possess the Fortitude to Operate a Fledgling Business Venture?
Starting and operating a new business can be an exciting and rewarding endeavor, but it entails a great deal of work. Is the entrepreneur ready and able to commit to six or seven twelve-hour workdays each week year in and year out?
How Will the Aspiring Entrepreneur’s Family be Emotionally and Financially Impacted by the Business Endeavor?
Starting a new business venture requires a great time commitment. An entrepreneur’s family must know what to anticipate and they must be supportive throughout the growth of the business endeavor. Aside from the time commitment required of the entrepreneur; there is often a lag time between the inception of the business and profitability; the entrepreneur and his family must understand this and be willing to weather the storm until they can begin to reap the profits of the business venture.
Does the Entrepreneur have the Resources Necessary to Start a Business?
In order to start a new business, one must have not only desire and talent but the financial and interpersonal resources to get the endeavor up and running. Is the entrepreneur acquainted with individuals and groups who can aid him in accessing funding for the start-up and operation of the business venture? Does he have a working relationship with an attorney and an accountant familiar with the needs of a small business? Does he know persons who can advise him regarding his venture? Is he familiar and friendly with people involved in the industry he wishes to enter?
Once the aspiring entrepreneur has analyzed these questions and become comfortable with his answers to each of them, he can move forward to the next step in starting a small business: the development of a business plan.